Correlation Between Chongqing Sulian and Heilongjiang Publishing
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Chongqing Sulian and Heilongjiang Publishing and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chongqing Sulian with a short position of Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Heilongjiang Publishing.
Diversification Opportunities for Chongqing Sulian and Heilongjiang Publishing
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Heilongjiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing and Chongqing Sulian is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chongqing Sulian Plastic are associated (or correlated) with Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Heilongjiang Publishing
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 0.91 times more return on investment than Heilongjiang Publishing. However, Chongqing Sulian Plastic is 1.1 times less risky than Heilongjiang Publishing. It trades about -0.06 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.3 per unit of risk. If you would invest 2,783 in Chongqing Sulian Plastic on October 20, 2024 and sell it today you would lose (104.00) from holding Chongqing Sulian Plastic or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Heilongjiang Publishing |
Chongqing Sulian and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Heilongjiang Publishing
The main advantage of trading using opposite Chongqing Sulian and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Heilongjiang Publishing can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Chongqing Sulian vs. Heilongjiang Publishing Media | Chongqing Sulian vs. Bingo Software Co | Chongqing Sulian vs. Thunder Software Technology | Chongqing Sulian vs. GuoChuang Software Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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